We got back from Turkey on Saturday morning after what can only be described as a really fabulous holiday. The location in Dalyan was wonderful, the hotel was fabulous, the weather was awesome, plus the added benefits of a) having all our bags arrive as expected and b) not even a squeak of a dodgy tum.
So would I recommend the location? - absolutely - the town is located on the banks of a river that joins a big freshwater lake - actually the second biggest in Turkey - to the sea. Almost everything worth doing in the area involves boats and along the river there are many of them - some just doing the 30 min trip to the beach, and others offering more extensive and complex itineraries.
The Dalyan town mascot/symbol is the turtle - mainly because there are turtles living both in the fresh water and in the sea. The beach is actually called turtle beach because loggerhead turtles lay their eggs there, and as a consequence there are restrictions around where you can sunbath and also the times you can access the beach. The town has realised that this unique place is a real attraction for visitors, so has resisted pressure to build hotels and other accomodation in the area, which will hopefully allow the turtles to survive.
Whilst sitting next to the river eating dinner, we saw two big river turtles and then later in the week, saw a loggerhead turtle that lives in the salt water lagoon next to the beach - this one is quite tame - allegedly it was injured as a youngster and so hasn't migrated, especially as the local boats feed it crabs and use it as a bit of an attraction.
The hotel we stayed in - the Alla Turca - was fab. The rooms were great - with aircon - the pool was great, staff were great, food was good. We even had the cricket on the telly at the pool bar, so could sit in the glorious sunshine drinking beer whilst Ricky Ponting got increasingly grumpier as the Aussies took a spanking. I'm now hoping for continuous rain for the remainder of the summer - I've had my sun fix now so I don't care 
We took a boat tour of Dalyan on Wednesday that started at the town, stopped off near the tombs that are carved into the cliffs for photos, went to the beach (via the turtle) for an hour and a half, went back up river for lunch. After that the trip went on to the mud baths for a 10 year rejuvenation treatment (everyone looks like a kid when covered in grey mud) and then up for a swim in the lake. Finally we returned back down the river to the ancient ruins of Kaunos - which is a Roman settlement on the river banks opposite Dalyan, where we were free to wander around and into the Roman baths, climb up the 4000 seater ampitheatre and generally explore the ruins before finally returning to the town. A really good day long diversion was had for the princely sum of 20 TL - so about 8 quid each (including lunch).
So overall would I recommend it? Yes indeed, although its not a typical tourist destination with noisy bars and discos, so not the place to go if that's what you want. Its a friendly place with plenty to see and do if you feel the need to venture away from the pool or the beach. After talking about my experience, one of my colleagues has booked an identical trip in September. Hope it doesn't all go downhill now...

. The last time I went, my luggage made it to Istanbul an hour before I was due to board a plane home - so I had enough time to get my suitcase and check it in for the return - which it didn't make, but at least I had a change of clothes to get home in. I also ended up losing about a stone in weight over the subsequent 2 weeks in a way that I can only describe as very unpleasant for both me and anyone in the nearby vicinity...